US President Donald Trump has taken aim at the Federal Reserve, criticizing its decision to lower interest rates by a quarter-point. The move, which brought the benchmark rate down to between 3.5% and 3.75%, was seen as a gesture of goodwill by the central bank in response to a weakening economy.
Trump, however, saw it as insufficient, suggesting that the Fed could have cut rates twice as much. He also took a swipe at Fed Chair Jerome Powell, describing him as a "stiff" who is too slow to respond to economic conditions. The President believes that cutting interest rates is counterproductive when the country is doing well.
The Federal Reserve's decision was announced by the Federal Open Market Committee (FOMC), which voted 9-3 in favor of the rate cut. While three officials dissented, Fed Governor Stephen Miran argued for a half-point reduction, while Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid preferred to keep rates unchanged.
The central bank's "dot plot" suggests that just two interest rate cuts are expected in the next few years, with another cut coming in 2027. However, some analysts believe that the FOMC may need to reconsider its stance on interest rates if economic growth slows further.
In a statement, the Fed said it would consider making additional adjustments to interest rates in the future, although this is not a new policy stance for the central bank. The FOMC's decision was seen as a moderate move, aimed at supporting economic growth without causing inflation to surge.
The move by the Federal Reserve has sparked a debate about the role of monetary policy in promoting economic growth and stability. Some argue that interest rates should be kept low to support businesses and households, while others believe that higher rates are needed to combat inflation and maintain financial stability.
Trump, however, saw it as insufficient, suggesting that the Fed could have cut rates twice as much. He also took a swipe at Fed Chair Jerome Powell, describing him as a "stiff" who is too slow to respond to economic conditions. The President believes that cutting interest rates is counterproductive when the country is doing well.
The Federal Reserve's decision was announced by the Federal Open Market Committee (FOMC), which voted 9-3 in favor of the rate cut. While three officials dissented, Fed Governor Stephen Miran argued for a half-point reduction, while Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid preferred to keep rates unchanged.
The central bank's "dot plot" suggests that just two interest rate cuts are expected in the next few years, with another cut coming in 2027. However, some analysts believe that the FOMC may need to reconsider its stance on interest rates if economic growth slows further.
In a statement, the Fed said it would consider making additional adjustments to interest rates in the future, although this is not a new policy stance for the central bank. The FOMC's decision was seen as a moderate move, aimed at supporting economic growth without causing inflation to surge.
The move by the Federal Reserve has sparked a debate about the role of monetary policy in promoting economic growth and stability. Some argue that interest rates should be kept low to support businesses and households, while others believe that higher rates are needed to combat inflation and maintain financial stability.
. I mean, they did lower interest rates which should help with the economy 
. And it's not like they're printing money out of thin air or anything... well, kinda 
. But seriously, what's wrong with giving them some space to make decisions? They're trying to balance inflation and growth here 
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. And what's with the "dot plot" 
? Just two cuts in the next few years? That sounds kinda vague to me... maybe they should be more transparent about their plans? 
. Trump's right, it feels like they're playing catch-up 
. The dot plot showing just 2 more rate cuts in the next few years doesn't exactly fill me with confidence 
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. Cutting rates can add up to $100B+ to the economy each year 
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!
. Like, he thinks the Fed could've done more, but then again, what does he know? 
I mean, the guy didn't even make it as a businessman, let alone understand how interest rates work. And now he's all like "the Fed is too slow"? Give me a break! 
Jerome Powell is trying to do his job here, unlike some people who just tweet their opinions without knowing squat.
but im not sure about trumps stance on this one idk if he's just being dramatic as usual 
and what's with his diss for powell? like dude's trying to do his job 
what's next? gonna tweet his opinions on every econ paper out there?! anywayz, idk about this whole interest rate thing tho... my econ prof says its good for businesses and stuff but then again my friend who owns a small shop thinks it'll kill him lol so idk what to believe 
. And Powell gets roasted for being slow - what's wrong with him taking his time? The economists on FOMC were pretty split on this, too - half-point cut vs no change at all... it feels like they're trying to avoid a real decision 
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I need some credible sources before I start jumping on the bandwagon of "lower rates are good for the economy"...
. And I'm not sure how much of an impact his whole 'stiff' thing is gonna have on Powell 
just trying to support growth without causing inflation issues. i think 2 interest rate cuts in the next few years is a reasonable expectation, but we'll see how it plays out 
I mean, who does he think he is? The guy's all about keeping interest rates low, but honestly, I think that's kinda crazy talk. Like, if we're doing well in the economy, why would we wanna cut rates again? 
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